May-2015
May-2015
May-2015
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cept and functions of PB, restrictions imposed along with<br />
their implications, and prospects & challenges involved in<br />
the process of implementation of the scheme.<br />
The Concept of Payment Bank and its Functions<br />
The RBI issued final guidelines on Payment Bank on<br />
27th November, 2014. The PB will be registered as a<br />
public limited company under the Companies Act, 2013,<br />
and licensed under Section 22 of the Banking Regulation<br />
Act, 1949, with specific licensing conditions. It is a move<br />
to directly regulate Non-Bank corporate entities, such<br />
as mobile phone companies, supermarket chains, existing<br />
Non-Banking Finance Companies (NBFCs), online<br />
e-commerce providers, BC and distribution agency organizations<br />
that provide customer banking and payment<br />
services. The concept of PB will be clear if we consider<br />
the Table 1 which distinguishes the services of PB from<br />
other categories of the similar service providers:<br />
Table 1: Difference between PB and Various Banking Service<br />
Providers<br />
System<br />
Payments<br />
Network<br />
Operator (like<br />
MasterCard,<br />
Visa)<br />
Payments Bank<br />
(PB)<br />
Scheduled<br />
Commercial<br />
Bank (SCBs)<br />
White Label<br />
ATM (TATA/<br />
Indica$h)<br />
Extension of<br />
Credit<br />
Acceptance of<br />
Deposit<br />
Payment<br />
Facility<br />
No No Yes<br />
No Yes Yes<br />
Yes Yes Yes<br />
No No Yes<br />
Digital Wallet No No<br />
Yes (only if both<br />
party agree)<br />
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MAY <strong>2015</strong> the MANAGEMENT ACCOUNTANT 89
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